Investors in bitcoin are doing something at a greater rate now then ever before.
What are they doing you might be wondering?
They are hodling!
There is more bitcoin being held now than ever before.
Check it out:
Those numbers represent bitcoin that hasn't moved in over a year.
Since the supply is increasing daily, it makes sense that there is more bitcoin being held in absolute terms now than there was several years ago.
However, it's more than just that...
As a percentage of the total supply, there is also more dormant bitcoin now than ever before.
According to the data, the amount of dormant BTC as a percentage of the total supply has sharply increased in recent years.
So, not only are more bitcoins being held in total, a greater percentage of the total supply is being held as well.
Hodlers gonna hodl!
Stay informed my friends.
So whats going to happen next? are hodling = price going up?
It shows the optimistic view the hodlers have. Is it misplaced? Time will tell. But it is hard, when looking at it from a supply/demand equation, to see how the price will get obliterated, long-term, with some many refusing to sell.
They are not in for simple trades.
Passive investors. I've heard that non crypto companies spent 4 TRILLION $ to buy own stocks, maybe to speculate on the market, to show that people interested it hteirs stocks)) It's pyramid scheme.
Crypto now looks better.
It's good that there are some hodlers who will keep on hodling come rain or shine! That said, this hold on Bitcoin could keep market liquidity constant, as we're not seeing too much volumes on the trading side.
My only fear, is that the 64% start to dump on the markets, though so long as the current price action stays, I can't see that happening.
I personally think such high level of HODLing is bad for Bitcoin in the long term. The only way BTC will get accepted as a day to day currency is if more people start using it for daily transactions else it will remain just a speculative asset.